The big news this morning is that the People’s Bank of China Gov. Zhou Xiaochuan said, “China will help resolve Europe’s debt crisis.” Remember that a couple of weeks ago, the news was that the Chinese “may” help once they figure out to participate in the EFSF… So the markets are correct this morning to key on the word change from “may” to “will”. And the euro (EUR) rallied on the news, pushing the rest of the currencies onto the rally tracks to join the euro.
[Read more...]RBA Sounds Upbeat About Global Economic Growth
February 7, 2012 By Leave a Comment
Good day… And a Tom Terrific Tuesday to you! Well… Yesterday, I realized that I couldn’t eat all day on Sunday, and expect to want to eat on Monday! But I’m ready to do so today! HA! I also realized yesterday just what a Donnie Downer I’ve been lately, with my insistence that there’s something going on to pull the wool over our eyes… That may be, but I’ve got to be more upbeat, eh?
[Read more...]Currency Rally Fades in Overnight Trading
January 24, 2012 By Leave a Comment
The currency/risk on rally was quite strong yesterday, all day long! However, in the overnight markets, we’ve seen some profit taking, and reassessing of what they were doing, like pushing the euro to above 1.30. I say that because there’s still no agreement with Greece and the private creditors… I keep hearing and reading analysts, talking about how the Greece problem is unsolvable… OK… maybe it is… but if that’s true, then what about Illinois? Or California?
[Read more...]Will The ECB Be More Like The Fed?
November 18, 2011 By Leave a Comment
Well… We saw another “take-down” of gold yesterday… It’s shameful to watch this going on… And while it was happening, I decided to take down some notes, so that I didn’t forget them front and center, this morning…
OK… Ever wonder why I’m so confused as to why gold goes down when it should be going up?
[Read more...]Continue to Buy Gold on Dips
November 16, 2011 By Leave a Comment
Well… There I was, in a room full of CFAs — people with minds that don’t work like mine, or should I say mine doesn’t work like theirs! And at the podium was James Bullard, President of the St. Louis Fed… And it hurts me to talk, and I would not have been able to talk loud enough for him to hear my question… Oh, the things that happen to me!
[Read more...]Italy Successfully Auctions Bills
November 10, 2011 By Leave a Comment
Mike told you yesterday about how the euro (EUR) had lost over 2-cents in the overnight markets, on fears that Italy, which is a much larger economy than Greece, is the next to visit the bailout doctor. The euro went up, when it was announced that the budget vote had passed, and it went down when it was announced that Berlusconi no longer had a majority government, and then it went right back up when it was announced that Berlusconi had stepped down. But that “relief rally” didn’t last long, as everyone began to imagine what it would cost to bailout Italy…
[Read more...]Greece Forms a New Government
November 7, 2011 By Leave a Comment
It’s raining on the Eurozone leaders again this morning. To get you caught up, let me go back to what happened since I signed off on Friday morning. First of all Greek Prime Minister (PM) Papandreou, did receive a positive Confidence Vote from his Parliament, regarding the Eurozone Grand Plan… But there was a caveat to the vote… It was approved only on the understanding that Papandreou would step down, and that a new government would be formed to take them into the next election on February 19, 2012.
[Read more...]Greek PM Begins to Sell the Grand Plan
November 2, 2011 By Leave a Comment
Good day… And a Wonderful Wednesday to you! I’m bailing on the trading desk today… Remember when I told you last week about too fast, can’t last with the currencies? Well… I think that was me and coming back to the office… Nevertheless, I’m here to give you the latest news on the currencies, metals, economies, and Chuckisms!
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Aussie Inflation Falls, Dragging the Aussie Dollar Down
The Aussie inflation report that printed last night certainly is going to give my thought of no rate cut a lot of problems. Aussie first-quarter CPI rose just 0.3% from the previous quarter.
The forecasts ranged from 0.5-0.6%, so the lower inflation is going to be the straw that stirs the drink for the Reserve Bank of Australia (RBA), who had hung their rate cut hat on this report. Now that it has printed and was very weak, I don’t see how the RBA doesn’t cut rates. So much for me leaving a light on for no cut, eh?
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